Fostered by increasing demand across numerous industries, advancements in the latest technologies, and attention towards sustainable practices, the specialty chemicals industry is poised to witness long-term robust growth and expansion.
Given the industry’s bright prospects, fundamentally sound specialty chemicals stocks DuPont de Nemours, Inc. (DD - Get Rating), Givaudan SA (GVDNY - Get Rating), and PPG Industries, Inc. (PPG - Get Rating) could be solid additions to your portfolio now.
Products of specialty chemical companies are used by various industries, including textiles, manufacturing, automotive, oil and gas, construction, food, and cosmetics. These diverse applications and continuously evolving technologies have poised the market for continued growth.
With the adoption of sustainable practices, the introduction of the latest digital technologies, and growing demand from diverse industries and segments, the specialty chemicals industry is continuously boosting advanced manufacturing.
Digital technologies are swiftly reshaping the landscape of chemical manufacturing by enabling innovative materials and cost-effective formulations. Further, with advancing manufacturing needs, rising environmental concerns, and standards around sustainability, specialty chemical companies that offer eco-friendly and sustainable solutions have wider opportunities in the future.
The global specialty chemicals market is expected to grow to $1.06 trillion in 2032, exhibiting growth at a CAGR of 5%. Also, the U.S. specialty chemical market is expected to reach a value of $152.36 billion by 2032, driven by expanding demand for construction chemicals amid growing investments in infrastructure projects.
Considering these encouraging trends, let’s take a look at the fundamentals of the three best Chemicals industry stocks, beginning with the third choice.
Stock #3: DuPont de Nemours, Inc. (DD - Get Rating)
DD provides technology-based materials and solutions internationally. The company operates through Electronics & Industrial; Water & Protection; and Corporate & Other segments. The company supplies materials and solutions for the fabrication of semiconductors and integrated circuits.
On November 7, 2024, DD launched Tyvek® with Renewable Attribution (RA), an extension of the existing portfolio of Tyvek® products for healthcare packaging, offering a significantly reduced carbon footprint, enabling more sustainable healthcare packaging. Tyvek® is designed to help reduce carbon footprint and helps to reduce the use of fossil fuels.
DD has attained ISCC PLUS Certification for its Tyvek® facilities at the Richmond, Virginia, and Luxembourg manufacturing sites, ensuring credible measurement, tracking, and attribution of certified bio-circular feedstocks replacing fossil fuel-derived resources.
For the fiscal 2024 third quarter that ended September 30, 2024, DD’s net sales increased 4.4% year-over-year to $3.19 billion. The company’s operating EBITDA rose 10.6% from the year-ago value to $857 million. In addition, the company’s adjusted earnings came in at $494 million and $1.18 per share, reflecting growth of 19% and 28.3% from the prior-year quarter, respectively.
As per the financial outlook for the fourth quarter, DD expects net sales of $3.07 billion and operating EBITDA of $790 million. It also expects adjusted EPS of $0.98.
Further, the company raised the full-year 2024 outlook, where now it expects its net sales to be $12.36 billion. Further, DD’s operating EBITDA is expected to be $3.12 billion and adjusted earnings per share to be $3.90.
Analysts expect DD’s revenue and EPS for the fourth quarter (ended December 2024) to increase 5.9% and 12.7% year-over-year to $3.07 billion and $0.98, respectively. Moreover, the company surpassed the consensus EPS estimates in all of the trailing four quarters.
DD’s stock has gained 0.9% over the past month and 20.2% over the past year to close the last trading session at $76.33.
DD’s solid outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Sentiment and Growth. Within the B-rated Chemicals industry, DD is ranked #31 among 81 stocks.
Click here to access additional DD ratings (Stability, Quality, Value, and Momentum).
Stock #2: Givaudan SA (GVDNY - Get Rating)
Headquartered in Vernier, Switzerland, GVDNY manufactures, supplies, and sells fragrance, beauty, taste, and well-being products to the consumer goods industry. It operates in two divisions, Fragrance & Beauty, and Taste & Wellbeing. It offers fine fragrances, consumer products, fragrance ingredients, and active beauty products.
On January 29, 2025, GVDNY introduced Guardians of Memories, an interactive and educational game available on Roblox, offering Gen Z and Alpha consumers the world of olfactory creation. The game allows the players to embark on a captivating adventure to explore the powerful connections between scents, memories, and emotions.
For the full year that ended December 31, 2024, GVDNY’s group sales increased 7.2% year-over-year to CHF 7.41 billion ($8.19 billion). The company’s gross profit reached CHF 3.27 billion ($3.55 billion), up 14.9% from the prior year. Its operating income grew 24.9% from the year-ago value to CHF 1.39 billion ($1.54 billion).
In addition, the company’s net income and EPS were CHF 1.09 billion ($1.20 billion) and CHF 118.17, up 22.1% year-over-year, respectively. Also, GVDNY’s comparable EBITDA came in at CHF 1.82 billion ($2.01 billion), an increase of 17.4% from the previous year’s period.
Analysts expect GVDNY’s revenue and EPS to be $8.59 billion and $2.83 for the fiscal year ending December 2025, representing 5% and 8.9% yearly improvements. Furthermore, the company has topped the consensus revenue estimates in all four trailing quarters.
Over the past month, the stock has gained 1.6% and 3.9% over the past year to close the last trading session at $89.12.
GVDNY’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, equating to a Buy in our proprietary rating system.
GVDNY has an A grade for Stability and a B for Quality. The stock has ranked #23 in the list of 81 stocks within the same industry.
To see the other ratings of GVDNY for Growth, Value, Sentiment, and Momentum, click here.
Stock #1: PPG Industries, Inc. (PPG - Get Rating)
PPG manufactures and distributes paints, coatings, and specialty materials worldwide. The company operates through two segments: Performance Coatings and Industrial Coatings. It offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing.
On December 2, 2024, PPG completed the 100% sale of its architectural coatings business in the U.S. and Canada for $550 million to American Industrial Partners, an industrial investor. The transaction, along with prior business sales, optimized PPG’s portfolio by improving organic growth and financial return profiles. Also, it increases its capabilities to channel growth resources.
Also, on November 18, 2024, PPG entered into a strategic partnership with SARO/Siccardi, Italy’s largest distributor of powder coatings. The strategic collaboration strengthens PPG’s distribution network for powder coatings in the Italian market and broadens its customer access to high-quality products and services.
During the third quarter that ended September 30, 2024, PPG posted net sales of $4.58 billion, and its income before income taxes grew 9.7% from the year-ago value to $611 million. In addition, the company’s adjusted net income and EPS totaled $500 million and $2.13, reflecting increases of 1.4% and 2.9% from the prior year’s quarter, respectively.
Furthermore, as of September 30, 2024, the company’s total current assets stood at $7.91 billion, compared to $7.43 billion on December 31, 2023.
Street expects PPG’s EPS for the fourth quarter (ended December 2024) to increase 6.8% year-over-year to $1.63. For the fiscal year 2024, the company’s EPS is anticipated to grow 6.3% year-over-year to $8.15.
Shares of PPG have surged 3.6% over the past month to close the last trading session at $123.01.
PPG’s POWR Ratings reflect its solid prospects. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
PPG has a B grade for Growth and Quality. It is ranked #22 among 81 stocks in the B-rated Chemicals industry.
In addition to the POWR Ratings highlighted above, you can check PPG’s ratings for Value, Momentum, Stability, and Sentiment here.
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GVDNY shares were trading at $87.48 per share on Wednesday afternoon, down $1.64 (-1.84%). Year-to-date, GVDNY has gained 0.46%, versus a 2.89% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
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Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
GVDNY | Get Rating | Get Rating | Get Rating |
DD | Get Rating | Get Rating | Get Rating |
PPG | Get Rating | Get Rating | Get Rating |